Bitcoin and other cryptocurrencies plunged along with stock prices on Wednesday amid growing market concerns. Digital asset prices are below key technical levels, suggesting further declines are possible.
Bitcoin price fell 8% in the past 24 hours to $57,200. It was previously trading around $56,500, which is about $10,000 below the 50-day moving average of around $66,500, indicating significant technical market weakness. His largest digital asset was as recently as Tuesday he held nearly $62,000…
Bitcoin
Amid market concerns, other cryptocurrencies also fell sharply on Wednesday, falling along with stocks. Digital asset prices are below key technical levels, suggesting further declines are possible.
Bitcoin price fell 8% in the past 24 hours to $57,200. It was previously trading around $56,500, which is about $10,000 below the 50-day moving average of around $66,500, indicating significant technical market weakness. The largest digital asset held nearly $62,000 before being sold as of Tuesday, and its price is currently well below its mid-March all-time high of around $74,000.
“The technical downside target is currently $55,700 (61.8% Fibonacci retracement of the rise since October) and the $51,000-$52,000 area,” said Alex Kupczykevich, analyst at broker FxPro. (It appears to be a consolidating area in late January.)
US macroeconomic news took center stage after the token plunged on Tuesday.
S&P500
And the rest of the stock market. Bitcoin has been shown to be correlated with other risk-sensitive assets such as stocks, and is similarly vulnerable to the outlook for interest rates, which impacts investors' risk appetite.
The dominant market view remains the outlook for sustained inflation and interest rates, with investors betting that persistent price increases will allow the Federal Reserve to keep interest rates at generational highs for longer than previously thought. I'm worried that I might end up doing this. Tuesday's economic data triggered a rebound on inflation, leading to market declines as other triggers loom, including Wednesday's Fed interest rate decision and Chairman Jerome Powell's press conference ahead of Friday's key U.S. jobs report. .
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“both [the Fed decision] The monthly jobs report later today and Friday has a good chance of accelerating or reversing the downward trend. [in Bitcoin]” Kupczykevich said.
Beyond Bitcoin
ether
The second-largest cryptocurrency by market capitalization fell 6% to $2,875. Small tokens are also weak;
Solana
8% slide,
ripple
30% backward. Meme coins are even more in the red,
dogecoin
decreased by 11%,
Shiba Inu
12% dropout.
Email Jack Denton at jack.denton@barrons.com.
